Policy Type: Executive Limitations
Policy Title: Budgeting/Forecasting
Budgeting is derived from long-term planning. Budgeting any fiscal year or the remaining part of any fiscal year shall not deviate materially from Board Goals and priorities, risk fiscal jeopardy, or fail to a generally acceptable level of foresight.
Accordingly, the president may not cause or allow budgeting which:
- Contains too little information to enable accurate projection of revenues and expenses, separation of capital and operational items, and disclosure of planning assumptions.
- Plans the expenditure in any fiscal year of more funds than are conservatively projected to be received during that period.
- Proposes a budget that does not provide the annual operating fund for Board prerogatives, such as costs of fiscal audit, Board development and training, and Board professional fees.
- Proposes a budget that does not have a broad base of input.
- Proposes a budget that fails to include reasonable needs of the institution, including written rationale for justification of underfunding.
- Infringes on the Board’s authority to adopt or amend an annual operating budget
- Includes tuition and fee revenues at rates that differ from those approved by the Board.